Following consultation over the course of 2014, the government and HS2 Limited finally announced details on Friday of their latest property compensation packages for those occupiers within Phase 1 of the route.
As highlighted in our October newsletter, HS2 Limited has now established the Voluntary Purchase Scheme which is available to home owners and occupiers of commercial (subject to a rateable value of no more than £34,800) and agricultural units located within 60–120 m of the line within the Rural Support Zone. Successful claimants will be entitled to the unblighted market value of their property, but unlike those occupiers within the protected zone, they will not receive disturbance compensation (such as removal costs, etc.) or a loss payment.
Alternatively, should an eligible occupier not wish to move, they have the option of accepting a Cash Offer which equates to 10% of the unblighted market value of the property, subject to a minimum of £30,000 and a cap of £100,000.
In addition to the voluntary purchase scheme, HS2 Limited has announced the Need To Sell Scheme which now replaces the exceptional hardship scheme that was introduced in 2010. Under the Need to Sell Scheme, an occupier living any distance from the line can apply, provided they meet the residency test and locational criteria as established under the Exceptional Hardship Scheme and that they can demonstrate they have a compelling reason to sell but have not been able to do so as a consequence of HS2. The Need to Sell Scheme is slightly more relaxed, as it will consider applications from those who may not need to move immediately. It is also open to a new class of occupier, the “reluctant landlord.”.
Finally, the Homeowner Payment will be introduced once royal consent to the hybrid bill has been granted, which is expected in late 2016. The payment is available to those parties within the Homeowner Zone, which runs from 120 to 300m from the line and comprises a sliding scale of payments from £7,500 to £22,500, dependent upon proximity. Interestingly, those owners within the Homeowner Zone may still qualify for the Need to Sell Scheme.
Click here for a useful chart prepared by HS2 Limited, which sets out who is entitled to what compensation, with full details available on the HS2 website. As always, we at Roger Hannah & Co are happy to discuss how HS2 will affect you and which scheme may be best suited for your particular circumstances.
For further details on the other compensation packages available, please click here.